Things You'll Need:
- $1.2 to $2 million
- Net worth of $1.5 million
- Liquid assets: $750,000
- Industry experience
- Marketing experience
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Step 1
Consider whether a KFC franchise is for you. The franchisor company -- Yum! Brands -- requires someone who has substantial business and restaurant experience and adequate funds. (A link to an article on how to finance a franchise is at the bottom of this page.) Ideally, the company wants franchisees committed to running 3 restaurants within 3 to 5 years.
It can take as long as 45 weeks to open a KFC due to the company's qualification and preparation requirements as well as the time to build a new restaurant (assuming you don't buy an existing one.) The advantage to this long wait is that it reflects the company's high standards and determination that its franchisees are well prepared. -
Step 2
Research KFC franchising and available opportunities. Carefully review the Yum! Brands franchise website. (See link at end of this article.)
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Step 3
Contact KFC through its website or email them at 2yumyum@yum.com. You will be sent forms and franchise brochures. You can also request a someone call you to discuss KFC franchise opportunities.
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Step 4
Decide whether you want to explore "co-branding" -- opening a restaurant that will sell KFC and other Yum! Brand products such as Taco Bell and Pizza Hut. A co-branded restaurant will benefit from more advertising and a great array of products. It also will be larger and more expensive to purchase.
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Step 5
Decide whether you want to establish a new KFC or buy an existing franchise. An existing franchise will have a sales track record but probably will command a good will fee to the current owner. Ask to see financial records going back several years if you are considering an existing KFC. Beware if the fees for an existing restaurant seem too low -- the owner or company may know something about the area such as another restaurant being planned nearby and is trying to bail out.
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Step 6
Carefully research available KFC's. Will there be adequate customer traffic? Does the location have easy and safe road access? Is any road construction planned in front of or near the site? Are there other restaurants located or planned near the site? How close is the nearest KFC?
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Step 7
Carefully review the Franchise Disclosure Document (FDD). Under Federal law, you must be given 10 days to review the FDD before you sign anything or pay any money. The FDD must include names of current and former KFC franchise owners. Contact some of them to discuss their experiences with the company. See if a current franchisee will let you observe the operations of his business.
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Step 8
Prepare a business plan for your KFC. Yum! Brands has a process for you to do this during which it will review your plan.
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Step 9
Sign the FDD and pay your fees. There is a one-week training course at Yum! Brands headquarters and an 11-week training program in your new restaurant. Up to three people may take the training course.
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Step 10
Open your new KFC. If it is a new restaurant, you will do a grand opening.
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Step 11
Manage for success. Next to quality control and cleanliness, finding, motivating, and retaining good employees will be the key to your success.
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Step 12
Can't afford a KFC? There's lots of other possibilities, such as Subway, 7 Eleven, and cleaning franchises. See below links for details.
